Primerica (NYSE:PRI) Hits New 12-Month High - Should You Buy?

Key Points

• Primerica shares hit a new 52-week high, trading as high as $299.69 amid recent momentum. The stock has also been trading above its 50-day and 200-day moving averages.
• Analysts remain cautious overall despite some higher price targets, with the consensus rating at Hold and an average target price of $297.80. Recent updates included target increases from Keefe, Bruyette & Woods and Morgan Stanley, plus a Weiss Ratings upgrade.
• The company delivered solid quarterly results, beating EPS and revenue expectations with $5.96 per share on $872.3 million in revenue. Primerica also paid a quarterly dividend of $1.20 per share, equal to a 1.6% annualized yield.

Primerica, Inc. (NYSE:PRI - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $299.69 and last traded at $299.32, with a volume of 147130 shares changing hands. The stock had previously closed at $297.06.

Analysts Set New Price Targets

PRI has been the subject of a number of research reports. Keefe, Bruyette & Woods lifted their price objective on Primerica from $290.00 to $305.00 and gave the stock a "market perform" rating in a research report on Wednesday, May 13th. Morgan Stanley upped their target price on shares of Primerica from $280.00 to $291.00 and gave the company an "equal weight" rating in a research report on Thursday, May 21st. Finally, Weiss Ratings upgraded shares of Primerica from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $297.80.

Primerica Stock Performance

The company has a market capitalization of $9.33 billion, a price-to-earnings ratio of 12.55 and a beta of 0.88. The company has a 50-day moving average price of $277.63 and a 200-day moving average price of $266.05.

Primerica (NYSE:PRI - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $5.96 earnings per share for the quarter, beating analysts' consensus estimates of $5.45 by $0.51. Primerica had a net margin of 22.99% and a return on equity of 32.32%. The business had revenue of $872.30 million for the quarter, compared to the consensus estimate of $855.36 million. During the same period last year, the company posted $5.02 EPS. Primerica's revenue for the quarter was up 8.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Primerica, Inc. will post 24.45 earnings per share for the current fiscal year.

Primerica Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Thursday, May 21st were issued a $1.20 dividend. The ex-dividend date was Thursday, May 21st. This represents a $4.80 annualized dividend and a yield of 1.6%. Primerica's dividend payout ratio (DPR) is 20.13%.

Insiders Place Their Bets

In related news, CEO Glenn J. Williams sold 1,500 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $280.49, for a total value of $420,735.00. Following the completion of the sale, the chief executive officer owned 33,696 shares in the company, valued at $9,451,391.04. This represents a 4.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Peter W. Schneider sold 1,800 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $279.64, for a total value of $503,352.00. Following the sale, the president directly owned 9,811 shares in the company, valued at $2,743,548.04. The trade was a 15.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.63% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PRI. Pacer Advisors Inc. raised its position in shares of Primerica by 1.1% during the first quarter. Pacer Advisors Inc. now owns 3,790 shares of the financial services provider's stock worth $949,000 after purchasing an additional 40 shares during the period. Alpine Woods Capital Investors LLC acquired a new position in shares of Primerica in the 1st quarter valued at approximately $2,415,000. Amundi increased its stake in Primerica by 5.5% during the 1st quarter. Amundi now owns 31,334 shares of the financial services provider's stock worth $7,849,000 after purchasing an additional 1,640 shares in the last quarter. California State Teachers Retirement System increased its stake in Primerica by 19.5% during the 1st quarter. California State Teachers Retirement System now owns 37,259 shares of the financial services provider's stock worth $9,333,000 after purchasing an additional 6,092 shares in the last quarter. Finally, Royal Bank of Canada raised its holdings in Primerica by 6.4% during the 1st quarter. Royal Bank of Canada now owns 42,103 shares of the financial services provider's stock worth $10,546,000 after buying an additional 2,528 shares during the period. 90.88% of the stock is owned by institutional investors and hedge funds.

Primerica Company Profile

Primerica, Inc is a financial services company that focuses on delivering term life insurance and investment products to middle-income households in the United States and Canada. The firm operates a network of independent, licensed representatives who provide personalized guidance on coverage needs, retirement planning, and wealth accumulation. Primerica's core mission is to help clients obtain affordable life insurance protection while also offering a suite of savings and investment solutions designed for long-term financial security.

In addition to term life insurance, Primerica offers a range of financial products and services that include mutual funds, annuities, auto and home insurance through partner carriers, and personal lending solutions such as secured and unsecured loans.

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